Whats new for mortgages 2022
Whats new for mortgages 2022
In Marbella there are new developments for mortgages in 2022 and they are certainly striking because of the changes compared to last year, which undoubtedly aim to create a better climate for real estate investments. What is happening? The strong resurgence on the Costa del Sol is well known to those working in the real estate sector, a situation that has convinced the financial corporation Dexter Global Finance to finance many transactions in Málaga.
Marbella prepares for growth
The subsidy has reached the golf sector, as well as for land purchase and bridging loans, among other major financial products. According to Dexters president, telecommuting activities and the fact that Málaga has become the centre of technology and business has benefited the area considerably.
Private equity financing and the renaissance of the real estate business have allowed million-dollar development projects to be considered for implementation.
Mortgage changes in 2022
We highlight the most important developments in a timely manner:
More expensive variable-rate mortgages
Households are expected to pay around 830 euros more annually and may pay as much as 1200 by the end of 2022, which should not pose any difficulty because households had saved enough with this type of mortgage since 2011, when the downturn began.
Fixed rate mortgage is the star
The fixed-rate mortgage is no longer frowned upon and has become attractive. Now banks are offering it to everyone who is interested in a mortgage. Buyers are aware of the upward trend of the Euribor and know that this will be the case for a long time. Fixed rate mortgages will be synonymous with peace of mind because you know what you have to pay every month, without any surprises because you will be shielded from possible interest rate rises.
Re-mortgaging is more profitable than paying rent
Living in rented accommodation has been more profitable than taking out a mortgage. Now this situation has been modified because the great search for rents has caused prices to reach very high levels. Everyone who has looked for a flat to rent knows that in cities such as Seville, Zaragoza, Barcelona, Madrid, among others, prices have skyrocketed and landlords have taken on the task of investigating and are now up to date with everything.
In these cities it is better to ask for a mortgage, especially fixed rate mortgages, because you already know how much you have to pay every month and landlords will not be able to make tyrannical updates. In 2022 there have been various developments in the mortgage field that had not awakened for years and had the Euribor in negative. Banks have been pulling fixed rate mortgages out of the drawers, adjusting the conditions to the current reality and increasing the interest rates.
You get the best mortgage by using apps or shoppers.
Mortgages have started to be asked for again and the customer has become the big beneficiary. Now you just have to look a little bit at all the offers from the banks as there are apps and websites where they have been making comparisons. In this way they have been informing the public about the maximum amounts that can be requested as well as the interest rate, what is the linkage that the bank is going to ask for, among others.
If you are offered a mortgage, you should not think too much about it and accept it immediately because the conditions have been changing due to the rise of the Euribor and the interest rates.
The reverse mortgage market will increase due to inflation
Although reverse mortgages had not been the most attractive product in Spain considering the belief that parents should leave inheritance to their children. As inflation is skyrocketing and pensions cannot be purchased, reverse mortgages will become more attractive and thus older people will be able to live more comfortably.
Likewise, it must be taken into account how much the bank will give and how much one would earn by selling it. But in this scenario, you would have to move and not all older people want to move.